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The Education Premium in Canada and the United States

John Burbidge, Lonnie Magee (magee@mcmaster.ca) and A. Robb (robb@mcmaster.ca)

Canadian Public Policy, 2002, vol. 28, issue 2, 203-217

Abstract: In the United States the education premium - the ratio of the earnings of university graduates to the earnings of high school graduates - has risen sharply in the last 20 years. Some economists and policymakers presume the same fact holds in Canada. Since so much of modern growth theory and micro- and macroeconomic policy turns on the education premium, it is important for social scientists and policymakers to know what has actually happened to the education premium. This paper argues that based on available evidence over the last 20 years the premium has been constant or has fallen in Canada.

Date: 2002
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